The land, to be acquired for a thermal power project, has been linked to the suicide of Dharma Patil, a farmer.
The Maharashtra government has launched an inquiry into the process of land acquisition for a thermal power plant project near Dhule.
It is believed that the land acquisition is connected to the suicide of Dharma Pail, a farmer, who died after consuming poison at Mantralaya in January.
Patil's family alleged that they were paid a lower price for the land while their neighbours received a higher compensation.
Maharashtra Energy minister Chandrashekhar Bawankule said the state government has proposed an ex-gratia of Rs 15 lakh per hectare to the Patil family and other affected farmers in Dhule, according to a Times of India report.
"The process of land acquisition started since 2012 and there are many issues that need to be looked at and which the inquiry will reveal," said Bawankule.
Bawankule added that Patil and his family had accepted the compensation, which made it impossible to revise the compensation unless the civil court is moved, Times of India reports.Bawankule said the issue of land acquisition was spread across 199 hectares of land, according to the report.